Question 7 (4 points) Z Company has the following information for the most recen

Question

Question 7 (4 points) Z Company has the following information for the most recent month. Total Store P Store Q $600,000 $200,000 $400,000 Variable Expenses 344,000 144,000 200,000 Sales Fixed Expenses: Controllable by Store P manager Controllable by Store Q manager Traceable to Store P but not controllable by Store P manager Traceable to Store Q but not controllable by Store Q manager Common fixed expenses Total Fixed Expenses What is the segment profit margin of Store Q? $20,000 32,000 45,000 55,000 34,000 $186,000 a) $77,000 b) $113,000 c) $200,000 d) $168,000

Explanation / Answer

The total sales for Q are= $ 400,000

Less; Variable Costs= $ 200,000

Less: Fixed cost that are controllable by manager of Q = $ 32,000

So the answer is d) $ 168,000

Since the other costs are either not controllable or common they cannot be reduced to calculate the segment profit.

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